HISTORICAL BACKGROUND
RBC first established its insurance platform in the early 1980s where it promoted creditor and basic travel insurance, as those were the few products that can be promoted by bank employees under Canada’s Bank Act. Through the acquisitions of various insurance companies, they eventually entered the life, health, property and casualty insurance markets; demonstrating significant growth in the industry and eventually being level in the playing field among other large insurance competitors (McLaren, Babin, & Schuster).
ISSUES
Despite achieving nearly 20% growth annually consistently throughout the years, RBC was challenged with sustaining the growth as it competed with other financial institutions and emerging competitors
…show more content…
Firstly, the threat of new entrants is relatively low due to the high start-up costs and other resources to logistically operate an insurance company. RBC’s long history and establishment in the financial industry benefited them when they acquired other insurance companies to build their portfolio.
While there are not too many insurance companies in Canada, this gives RBC a competitive advantage, as they are able to customize packages for an individual for example, something that is competitive with the market. Because there is a lower supply of insurance companies, the supplier bargaining power is high in this case. RBC has as extensive portfolio for insurance types ranging from travel, auto, contents, home, life and disability insurance; furthermore strengthening their competitive advantages compared to other insurance companies who may not offer the same insurance types, or at a special premium. Another example that demonstrates RBC’s high bargaining powers is its ability to cross or up sell other packages to meet the needs of existing customers when it uses its customer service or call centre, as mentioned in the
National Bank of Canada ("NBC" or "the Bank") is tasked with the decision to review Dawson Lumber Company Limited's ("Dawson") request for an increase in its line of credit up to the amount of $10.8mm. Dawson intends to finance inventory and receivables with the line of credit. NBC must remain cognizant of the competitive landscape of the lumber industry and assess whether a focus on the retail segment is beneficial to Dawson's strategic plan. Given that Dawson is one of the region's largest borrowers, NBC must be careful in how it manages this relationship. The Bank cannot afford to turn away NBC's business. However, extending Dawson additional credit may increase Dawson's default risk and jeopardize the potential for NBC to retrieve the $4.2mm term loan it is already owed.
...han a mercantile operation. This is evident through the rise of competition in the market, which prompted HBC to change to a corporative framework to carry out its operations. Furthermore, decreasing demand and supply of fur was weakening HBC. Focusing on other goods, rather than fur indicated that the company was reforming from its mercantile philosophy and exploiting other markets through a corporative framework. Lastly, the mercantile management was another declining factor to HBC’s operations. Leaders like George Simpson advocated a corporate management style so that it does not contradict with current Canadian economic environment. On the whole, it was important for HBC to transition to a complex corporate framework in order to survive through the transition. This transition initially progressed Canada towards the confederation and made its own stand globally.
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
NAB’s customer numbers have grown from 11.3m in 2010 to more than 12.7m in 2014.Since 2009, their share of business lending market is up from 20.1%
RBC Financial Group uses a customer relationship management (CRM) strategy that provides a variety of services for a variety of clients. The strategy allows for individual customers to trust RBC and develop a personal relationship with each and every client. One major factor that allows CRM to operate effectively is the use of technologies and analytics to help classify each client’s financial situation. These customer profitability-based techniques allowed RBC to categorize their clients into A, B, and C groups so that the sales teams could optimize their efforts in catering to these different clients. This strategy holds the following strengths: optimizing sales efforts to different customers, easily accessible electronic sales leads, centralized and standardized financial decisions, and building personalized and sustainable customer relationships. There are a few weaknesses to the system though including the complexity in predicting future positions of companies despite the use of analytics as well as the complexity in creating consistency when using these
Behind every product manufactured there are parts, fasteners, gloves, welds, holes that are drilled, and maybe a headache or two. These are all products that are sold and manufactured by the companies W.W. Grainger and Fastenal Company. Both of these companies are in the top ten in revenue for the industrial supply industry and I just so happen to work at one of them, that being Fastenal Co.
Canada Post is one of the largest Crown Corporations. In this report, we have to determine the organization structure and objectives of the Canada Post followed by the audience and market segment being targeted by the organization along with identifying the key success factors and the type of dealings the organization has with the government. With the worldwide growth of Ecommerce Sales, the demand for residential delivery is also increasing thus, Canada Post is operating as primary postal operator all over Canada headquarter in Ontario offering a full range of delivery and fulfillment services to customers. This paper will emphasis on the current environment and capabilities of Canada Post necessary to evaluate its position
Insurance companies exist to make money. They are not concerned with your needs which include great coverage at an affordable price. Their agenda consists of offering superfluous offers, causing you as a customer to lose money on frivolous items that won’t ever benefit you.
It gives customers the idea that the main focus for the company is the Canadian market. In the search of improving the business, Rogers can focus on developing technology that applies mainly to the needs of the domestic consumer. It sends a message that Rogers is doing everything in their power to provide services that will cater to Canadian buyers. Along with this, I also believe that Rogers hasn’t entered the international market because of its competitiveness. It has taken a long and rich history to create a solid reputation in Canada. On the worldwide stage, Rogers would have to compete with companies that have a worldwide reputation such as AT&T, Comcast Cable, Charter Communications, Verizon, and DISH Network. All in all, I think it would be hard to compete with a company like AT&T, which has a total net income of $13.3 billion and an annual revenue of $146.8 billion (“AT&T Fourth Quarter Earnings 2015”, 2016). In comparison, Rogers Communications has a net income of $1.49 billion and an annual revenue of $13.414 billion (“Rogers: Wireless, Internet, TV, Home Monitoring, and Home Phone”,
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
ING is one of the 20 largest financial structures in the world and within the top ten in Europe. A dutch-founded company, ING offers a variety of products lines in the insurance industry. It offers insurance services in the Americas, in Europe as well as in Asian countries. ING also does retail and wholesale banking all over the world. ING was the first European enterprise to enter the life insurance market in countries such as Japan, Taiwan and South Korea. Life insurance policies in Asia are different than policies in the rest of the world. Asian life insurance policies include a savings aspect as well the life insurance component. Jacques Kemp has recently become the CEO of the Asia/Pacific subdivision of ING Insurance and is attempting to prepare his firm for the future competition they will face.
The purpose of this presentation is to provide a comparative analysis of business activities of two well-known representatives of the US retail industry, Target and Walmart. My research is focused on a business strategy of these largest and most experienced American merchandising companies; particularly, on their activities in Canada. Based on the data collected from the various sources, I would like to detect, analyze, and demonstrate the obvious causes that have lead to a catastrophic failure of Target in its unsuccessful attempt to win a Canadian market.
This distinction is achievable with a strong workforce that represents the value of the company and communicates it effectively with their clients (QuickMBA.com). Even more important, this provides the opportunity to up-charge a premium price for the insurance products (Chapter 7, 184).... ... middle of paper ... ...
Risk Management practices by Royal Dutch Shell plc Risk factors considered by Royal Dutch Shell plc Prices of oil, natural gas, oil products and chemicals are affected by supply and demand. Factors that influence these include operational issues, natural disasters, weather, political instability, or conflicts, economic conditions or actions by major oil-exporting countries. Price fluctuations can test our business assumptions, and can affect Shell’s investment decisions, operational performance and financial position. CURRENCY FLUCTUATIONS AND EXCHANGE CONTROLS As a global company, changes in currency values and exchange controls could affect our operational performance and financial position. ECONOMIC AND FINANCIAL MARKET CONDITIONS Shell companies are subject to differing economic and financial market conditions throughout the world. Political or economic instability affect such markets. If such a risk materialises it could affect our operational performance and financial position. TRADING AND TREASURY In the course of normal business activities, shell is subject to trading and treasury risks. These include among others exposure to movements in commodity prices, interest rates, and foreign exchange rates, counter party default and various operational risks Different risk faced by Royal Dutch shell Market risk Market risk is the possibility that changes in interest rates, currency exchange rates or the prices of natural gas, electrical power, crude oil, refined products, chemical feedstocks and environmental products will adversely affect the value of Shell’s assets, liabilities or expected future cash flows. Most of Shell’s debt is raised from central borrowing programmes. Shell has entered into interest rate swaps and currency swaps to effectively convert most centrally-issued debt to floating rate US dollar LIBOR (London Inter-Bank Offer Rate), reflecting its policy to have debt mainly denominated in US dollars and to have largely floating interest rate exposure profile. Consequently Shell is exposed predominantly to US dollar LIBOR interest rate movements. The financing of most subsidiaries is also structured on a floating-rate basis and, except in special cases; further interest rate risk management is discouraged. Based on the Consolidated Balance Sheet at December 31, 2007, the impact on net interest income/expense of a change in interest rates of 1% would not be significant. Foreign exchange risk The functional currency for most upstream companies and for other companies with significant international business is the US dollar, but other companies usually have their local currency as their functional currency. Foreign exchange risk arises when certain transactions are denominated in a currency that is not the entity’s functional currency.
In this report is discussed how that is going so far. Comparisons of their finances are made, but we will see what the strengths and weaknesses are and what their impact is on the company.